Delaware
New Report Finds that Upside-down State and Local Tax Systems Persist, Contributing to Inequality in Most States
• By Aidan Davis
State and local tax systems in 45 states worsen income inequality by making incomes more unequal after taxes. The worst among these are identified in ITEP’s Terrible 10. Washington, Texas, Florida, South Dakota, Nevada, Tennessee, Pennsylvania, Illinois, Oklahoma, and Wyoming hold the dubious honor of having the most regressive state and local tax systems in the nation. These states ask far more of their lower- and middle-income residents than of their wealthiest taxpayers.
Delaware: Who Pays? 6th Edition
• By ITEP Staff
DELAWARE Read as PDF DELAWARE STATE AND LOCAL TAXES Taxes as Share of Family Income Top 20% Income Group Lowest 20% Second 20% Middle 20% Fourth 20% Next 15% Next 4% Top 1% Income Range Less than $19,500 $19,500 to $34,700 $34,700 to $59,200 $59,200 to $100,000 $100,000 to $197,400 $197,400 to $444,900 over $444,900 […]
WBOC16: Incorporating in Delaware: The Perks and Pitfalls
October 12, 2018
Some critics of Delaware LLCs say until Delaware's corporate code is adjusted, criminal activity will continue to exist in Delaware's corporations. Matthew Gardner, a senior fellow at the Institute on Taxation and Economic Policy, authored a report entitled "Delaware: An Onshore Tax Haven."
State Rundown 10/12: Local Jurisdictions Fighting for Revenues, Independence
• By ITEP Staff
Voters all around the country are educating themselves for the upcoming elections, notably this week around ballot initiatives in Arizona and Colorado and competing gubernatorial tax proposals in Georgia and Illinois. But not all eyes are on the elections, as the relationship between state and local policy made news in Delaware, Idaho, North Dakota, and Ohio.
Tax Cuts 2.0 – Delaware
• By ITEP Staff
The $2 trillion 2017 Tax Cuts and Jobs Act (TCJA) includes several provisions set to expire at the end of 2025. Now, GOP leaders have introduced a bill informally called “Tax Cuts 2.0” or “Tax Reform 2.0,” which would make the temporary provisions permanent. And they falsely claim that making these provisions permanent will benefit […]
State Tax Codes Can Help Mitigate Poverty and Impact of Federal Tax Cuts on Low- and Middle-Income Families
• By Misha Hill
The national poverty rate declined by 0.4 percentage points to 12.3 percent in 2017. According to the U.S. Census, this was not a statistically significant change from the previous year. 39.7 million Americans, including 12.8 million children, lived in poverty in 2017. Median household income also increased for the third consecutive year, but this was […]
State Tax Codes as Poverty Fighting Tools: 2018 Update on Four Key Policies in All 50 States
• By Aidan Davis, Misha Hill
This report presents a comprehensive overview of anti-poverty tax policies, surveys tax policy decisions made in the states in 2018, and offers recommendations that every state should consider to help families rise out of poverty. States can jumpstart their anti-poverty efforts by enacting one or more of four proven and effective tax strategies to reduce the share of taxes paid by low- and moderate-income families: state Earned Income Tax Credits, property tax circuit breakers, targeted…
Rewarding Work Through State Earned Income Tax Credits in 2018
• By ITEP Staff
The Earned Income Tax Credit (EITC) is a policy designed to bolster the earnings of low-wage workers and offset some of the taxes they pay, providing the opportunity for struggling families to step up and out of poverty toward meaningful economic security. The federal EITC has kept millions of Americans out of poverty since its enactment in the mid-1970s. Over the past several decades, the effectiveness of the EITC has been magnified as many states…
Building on Momentum from Recent Years, 2018 Delivers Strengthened Tax Credits for Workers and Families
• By Aidan Davis
Despite some challenging tax policy debates, a number of which hinged on states’ responses to federal conformity, 2018 brought some positive developments for workers and their families. This post updates a mid-session trends piece on this very subject. Here’s what we have been following:
State Rundown 7/10: Budget Brinksmanship and Ballot Battles
• By ITEP Staff
New Jersey avoided a second consecutive shutdown and proved that even against staunch opposition, progressive solutions to states' fiscal issues are attainable, and Arizona voters will likely have a chance to solve their education funding crisis in a similar way. Budget and tax debates remain to be resolved, however, in Maine and Massachusetts. Meanwhile, voters are gaining a clearer picture of what questions they will be asked on ballots this fall as signature drives conclude…
All Bets are Off: State-Sponsored Sports Betting Isn’t Worth the Risk
• By Misha Hill
Many state legislators and regulators are considering expanding state-sponsored gambling by allowing betting on major league sports games. But the revenue states could bring in isn’t worth the risk.
SALT/Charitable Workaround Credits Require a Broad Fix, Not a Narrow One
• By Carl Davis
The federal Tax Cuts and Jobs Act (TCJA) enacted last year temporarily capped deductions for state and local tax (SALT) payments at $10,000 per year. The cap, which expires at the end of 2025, disproportionately impacts taxpayers in higher-income states and in states and localities more reliant on income or property taxes, as opposed to sales taxes. Increasingly, lawmakers in those states who feel their residents were unfairly targeted by the federal law are debating…
NBC: What Trump’s disclosure of his 500 LLCs can and can’t tell us
May 16, 2018
A 2015 report by the Institute on Taxation and Economic Policy, a non-profit, non-partisan, tax policy think tank, said Delaware’s tax code made it “a magnet for people looking to create anonymous shell companies, which individuals and corporations can use to evade an inestimable amount in federal and foreign taxes.” Read more
Tax Wars: 3 Lessons about Tax Policy from the Star Wars Universe
• By Richard Phillips
Even in the universe of Jedi, Death Stars and Ewoks, tax policy plays a surprisingly important role in driving the events of the day. In celebration of Star Wars Day, we just wanted to share some of the little-known tax policy lessons from the Star Wars universe.
State Rundown 5/3: Progressive Revenue Solutions to Fiscal Woes Gaining Traction
• By ITEP Staff
This week, Arizona teachers continued to strike over pay issues and advocates unveiled a progressive revenue solution they hope to put before voters, while a progressive income tax also gained support as part of a resolution to Illinois's budget troubles. Iowa and Missouri legislators continued to try to push through unsustainable tax cuts before their sessions end. And Minnesota and South Carolina focused on responding to the federal tax-cut bill.
New UK Law May Shut Down the Biggest Tax Havens — Aside from the U.S.
• By Steve Wamhoff
The United Kingdom’s parliament has enacted a new law requiring its overseas territories — which include notorious tax havens like Bermuda, the Cayman Islands, and the British Virgin Islands — to start disclosing by 2020 the owners of corporations they register. This could shut down a huge amount of offshore tax evasion and other financial crimes because individuals from anywhere in the world, including the United States. have long been able to set up secret…
State Rundown 12/31/9999: IRS Glitch and Legislative Impasses Extend Tax Season
• By ITEP Staff
This week the IRS website asked some would-be tax filers to return after December 31, 9999. State legislators don't have quite that much time, but are struggling to wrap up their tax debates on schedule as well. Iowa legislators, for example, are ironically still debating tax cuts despite having run out of money to cover their daily expenses for the year. Nebraska's session wrapped up, but its tax debate continues in the form of a…
Preventing State Tax Subsidies for Private K-12 Education in the Wake of the New Federal 529 Law
• By Ronald Mak
This policy brief explains the federal and various state-level breaks for 529 plans and explores the potential impact that the change in federal treatment of 529 plans will have on state revenues.
Mnuchin’s Not So Grand Stand on the Carried Interest Loophole Explained
• By Matthew Gardner
When President Trump released the initial outline of his tax reform plan in April, carried interest repeal was nowhere to be found. And when Congress hammered out a tax plan in late December, lawmakers agreed to reduce the cost of the carried interest tax provision by about 5 percent. (Full repeal would have raised $20 billion over a decade; the enacted provision raises about $1 billion.)
State Rundown 2/8: State Responses to Federal Bill Gaining Steam
• By ITEP Staff
Several states this week are looking at ways to revamp their tax codes in response to the federal tax cut bill, with Georgia, Idaho, Maryland, Nebraska, and Vermont all actively considering proposals. Meanwhile, Connecticut, Louisiana, and Pennsylvania are working on resolving their budget shortfalls. And transportation funding is getting needed attention in Mississippi, Utah, and Wisconsin.
How the U.S. Became a Top Secrecy Jurisdiction
• By Richard Phillips
Sometimes, ranking near No. 1 in the world is not a badge of pride. According to the Financial Secrecy Index released by the Tax Justice Network (TJN), the United States is the second largest contributor to financial secrecy in the world, placing it in the company of infamous tax havens such as Switzerland (ranked No. 1) and the Cayman Islands (ranked No. 3). Financial secrecy is enabling people to hide income from the authorities to…
What the Tax Cuts and Jobs Act Means for States – A Guide to Impacts and Options
• By ITEP Staff
The recently enacted Tax Cuts and Jobs Act (TCJA) has major implications for budgets and taxes in every state, ranging from immediate to long-term, from automatic to optional, from straightforward to indirect, from certain to unknown, and from revenue positive to negative. And every state can expect reduced federal investments in shared public priorities like health care, education, public safety, and basic infrastructure, as well as a reduced federal commitment to reducing economic inequality and…
How the Final GOP-Trump Tax Bill Would Affect Delaware Residents’ Federal Taxes
• By ITEP Staff
The final tax bill that Republicans in Congress are poised to approve would provide most of its benefits to high-income households and foreign investors while raising taxes on many low- and middle-income Americans. The bill would go into effect in 2018 but the provisions directly affecting families and individuals would all expire after 2025, with […]
The Final Trump-GOP Tax Plan: National and 50-State Estimates for 2019 & 2027
• By ITEP Staff
The final Trump-GOP tax law provides most of its benefits to high-income households and foreign investors while raising taxes on many low- and middle-income Americans. The bill goes into effect in 2018 but the provisions directly affecting families and individuals all expire after 2025, with the exception of one provision that would raise their taxes. To get an idea of how the bill will affect Americans at different income levels in different years, this analysis…
All I Want for Christmas is a Clean DREAM Act
• By Misha Hill
As 2017 draws to close, Congress has yet to take legislative action to protect Dreamers. The young undocumented immigrants who were brought to the United States as children, and are largely working or in school, were protected by President Obama’s 2012 executive action, Deferred Action for Childhood Arrivals (DACA). But in September, President Trump announced that he would end DACA in March 2018. Instead of honoring the work authorizations and protection from deportation that currently…
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